Sprouts Farmers Markets

Sprouts Farmers Market is a publicly traded specialty grocery retailer focused on natural and organic foods. The company was founded in 2002 by Stan Boney, Shon Alexander Boney, and Kevin K. Easler in Phoenix, Arizona. Sprouts began as a single store with a mission to make fresh, healthy food accessible and affordable, and has since grown into a recognized national brand.

As of November 2025, Sprouts is executing one of the most ambitious expansion strategies in the sector, with 37 new store openings planned for the year—surpassing its original goal—and a pipeline of 140 additional approved locations for future development. The company is prioritizing growth in the Midwest and Northeast, regions where its presence has historically been limited, while continuing national expansion. Management has signaled that the pace of new store openings will accelerate in 2026 and is on track for 10% unit growth in 2027.

Over the past five years, Sprouts has evolved its business model and operational capabilities. Notably, the company is transitioning to self-distribution for fresh meat and seafood, aiming to complete this shift by the second quarter of 2026 with five dedicated distribution centers. This move is designed to strengthen supply chain reliability and improve product availability in stores.

Sprouts operates a flexible store format that has proven successful in both established and emerging markets. The retailer continues to innovate, with plans to introduce approximately 7,000 new products in 2025, reflecting its commitment to staying ahead of consumer trends. The recent launch of the Sprouts Rewards loyalty program further enhances customer engagement and supports personalized shopping experiences.

Financially, Sprouts stands out for its strong balance sheet and self-funded growth. As of November 2025, the company maintains $322 million in cash, a $600 million revolving credit facility, and has $966 million remaining under a $1 billion share repurchase authorization. Its year-to-date operating cash flow of $577 million enables ongoing investment in new stores and infrastructure. Analysts currently rate Sprouts as a buy, with a market capitalization of $7.69 billion and a 12-month price target reflecting significant upside.

For landlords, brokers, and developers, Sprouts represents a credible and well-capitalized tenant with a proven track record of successful expansion, adaptable store formats, and a clear commitment to growth in underserved markets. The company’s ongoing investments in supply chain, product innovation, and customer loyalty position it as a resilient and attractive anchor for retail centers seeking stable, forward-looking tenants.